Book all your profits in MindTree before the merger with Larsen & Toubro takes place, said Mukul Kochhar, Head of Institutional Sales (India) at Investec Capital Services.
Kochhar said, “This is a hostile takeover for a services company like MindTree. If you look at any large acquisition of an IT services company, the probability of success is always low in the beginning. And, then when you take over that firm, it adds further complexity. Therefore, if the management of MindTree is not on-board then L&T will have to struggle in running the current business.”
He further added “The challenge now would be to run L&T Infotech and MindTree together. L&T Infotech is a sales oriented company while MindTree is people friendly. Both models can work together in the future but integrating the two diverse culture will be a challenge, even if you create incentives for the second layer.”Disclaimer:
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